U.S. Department of Energy Office of Science · U.S. Department of Energy Headquarters Secretary Dr....

Office of Science

U.S. Department of Energy

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U.S. Department of Energy’sOffice of Science

Large Science Project Experience at the U.S. Department of Energy

Daniel R. LehmanOffice of Project AssessmentSeptember 14, 2005www.science.doe.gov/opa

Office of Science


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Topics

Organizational Context− Big Government, Big Projects

Delivering Large Science Projects− DOE’s Project Management Process

Lessons Learned− Successful and Not-So Successful Projects

Final Reflections

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OFFICE OF SCIENCE AND TECHNOLOGY POLICY

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JUDICIAL BRANCH

THE CONSTITUTION

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SERVICES

DEPARTMENTOF ENERGY

DEPARTMENT OF AGRICULTURE

DEPARTMENT OF COMMERCE

DEPARTMENT OF DEFENSE

DEPARTMENT OF EDUCATION

DEPARTMENT OF HOMELANDSECURITY

DEPARTMENT OF HOUSING AND URBAN

DEVELOPMENT

DEPARTMENT OF THE INTERIOR

DEPARTMENT OF JUSTICE

DEPARTMENT OF LABOR

DEPARTMENT OF STATE

DEPARTMENT OF TRANPORTATION

DEPARTMENT OF THE TREASURY

DEPARTMENT OF VETERANS AFFAIRS

U.S. Department of Energy Headquarters

SecretaryDr. Samuel BodmanDeputy Secretary*

J. Clay Sell

Federal Energy

RegulatoryCommission

Under SecretaryFor Energy, Science and

EnvironmentDavid K. Garman

Under Secretary for Nuclear Security/Administrator for National

Nuclear Security AdministrationLinton F. Brooks

Associate Administrator

for Management andAdministration


for Infrastructure andEnvironment

EmergencyOperations

Deputy Administratorfor Naval Reactors

Deputy Administratorfor Defense Nuclear

Nonproliferation

Deputy Administratorfor Defense Programs

CivilianRadioactive Waste

Management

Nuclear Energy,Science

and Technology

Assistant Secretaryfor Energy Efficiency

and Renewable Energy

Science

Assistant Secretary for

Fossil Energy

Assistant Secretaryfor Environmental

Management

LegacyManagement

Electrical Transmission

and Distribution

Assistant Secretaryfor Environment,Safety and Health

Assistant Secretaryfor Congressional and

Intergovernmental Affairs

Assistant Secretaryfor Policy and

International Affairs


for Defense NuclearSecurity

Deputy Under Secretary

for Counter-terrorism

Power MarketingAdministrationCounterintelligence

Intelligence

Security and SafetyPerformance Assurance

InspectorGeneral

Chief InformationOfficer

PublicAffairs

Hearingsand Appeals

Departmental Rep.to the DNFSB

GeneralCounsel

Management, Budgetand Evaluation/CFO

Energy InformationAdministration

Economic Impactand Diversity

EnergyAssurance

Secretary of EnergyAdvisory Board

*The Deputy Secretary also serves as the Chief Operating Officer.

17 Mar 05

Office of Science

Director Raymond OrbachPrincipal Deputy James DeckerChief of Staff Jeffrey Salmon

Deputy forPrograms

James Decker

Chief OperatingOfficer

ProjectAssessment

Daniel Lehman

Budget andPlanning

Ralph De Lorenzo

BerkeleySite Office

Joseph Krupa (A)

Pacific NorthwestSite Office

Julie Erickson (A)

Thomas JeffersonSite OfficeJames Turi

FermiSite Office

Joanna Livengood

ArgonneSite Office

Creig Zook (A)

StanfordSite Office

Bob Wunderlich (A)

AmesSite Office

Roxanne Purucker

BrookhavenSite Office

Michael Holland

PrincetonSite Office

Jerry Faul (A)

Advanced ScientificComputing Research

Ed Oliver

Science Education &Workforce Development

Raymond Orbach (A)

Basic EnergySciences

Patricia Dehmer

Fusion EnergySciences

Anne Davies

High EnergyPhysics

Robin Staffin

Biological &Environ. ResearchAristides Patrinos

Nuclear PhysicsDennis Kovar

Laboratory Policy& Infrastructure

Leah Dever

Program Direction &Corporate Analysis

John Alleva (A)

InformationTechnology Management

Walt Warnick (A)

Oak Ridge OfficeGerald Boyd

Chicago OfficeMarvin Gunn, Jr.

Integrated SupportCenter

(A) Acting

Office of Science ( Exclud ing C o ng ressio nally D irect ed Pro ject s)A p p ro priat io ns Hist o ry ( 9 2 - 0 5) , R eq uest ( 0 6 )

00.5

11.5

22.5

33.5

4

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

Fiscal Year

FY 2

006

Con

stan

t ($B

)

SSC

Approximately 1,000 federal staff and xxxxx contractors

complex-wide

Provide Independent Oversight of SC Projects

Provide assistance to SC Line Project Managers

Analyze project execution issues and advise senior SC managers

Office of Science


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National Laboratories

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A Less Complex View

$3.3B/ Year

Heart and Soul

Eyes and Ears

Brains and Brawn

Miracles of Science

Office of Science HQ Program Managers

Office of Science Field Managers

10 National Labs

> 250 Universities

6 Major National Advisory Committees

Conscience

$3.3B/ Year

Heart and Soul

Eyes and Ears

Brains and Brawn

Miracles of Science



10 National Labs

> 250 Universities



10 National Labs

> 250 Universities

6 Major National Advisory Committees

Conscience

Office of Science


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Office of Science Mission

Our mission is to deliver the remarkable discoveries and scientific tools that transform our understanding of energy and matter and advance the national, economic and energy security of the United States.

Deliver = Project Management

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Department of Energy’s Portfolio of Projects

Organization Total Projects Total Project CostNNSA 64 $ 16.06B

EM 7 $ 6.94BSC 33 $ 6.25BNE 6 $ 0.43BEE 2 $ 0.10BFE 4 $ 1.07BOE 2 $ 0.03BLM 1 $ 0.01BEH 1 $ 0.02BRW 3 $ 10.1B

Sub-Total 123 $ 41.01BEM- Operating Projects 76 $ 126.04B

Total DOE 199 $ 167.05B

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Department of EnergyProject Management Legacy

Highly visible DOE project failures/cost overruns

High level of scrutiny by key DOE stakeholders (OMB, GAO, IG and Congress)

Specific Congressional direction to improve DOE project performance and project management systems

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Department of Energy Project Management System

DOE Project Management Practices

DOE Project ManagementManual

DOE Order 413.3

DOEP 413.1

Establishes DOE Policy for Program and Project Management

Provides Project Management Direction for Acquisition of Capital Assets

Documents Requirements and Guidance for the Planning and Acquisition of Capital Assets

Provides Non-Mandatory Guidance and References

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Office of Science


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Department of Energy Project Management Process

Project includedin DOE Budget

Preliminary Engineeringand Design funds (PED)

CD-0Approve Mission Need

CD-1Approve Alternative Selectionand Cost Range

CD-2Approve Performance Baseline

CD-3Approve Start of Construction

CD-4ApproveStart of Operations or Project Closeout

CriticalDecisions

Project funds

Initiation Phase Definition Phase

Transition/Closeout Phase

Execution Phase

Program funds

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Office of ScienceProject Management Philosophy

Dr. Orbach’s philosophy drives SC to:

Ensure that projects clearly support program research missionsVerify that projects are adequately defined and staffed before committing significant resourcesEstablish project baselinesMaintain project baselines through formal change controlDetermine a project’s success by measuring performance against the approved baseline

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Office of Science


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Typical Large DOE Science Project Stakeholders

Congress (Various Committees)

Office of Management and Budget (OMB)

Government Accountability Office (GAO)

Inspector General (IG)

Office of Engineering and Construction Management (DOE-OECM)

SC Office of Project Assessment (SC 1.3)

Eval

uatio

n/A

dvic

e

Independent Oversight

Integrated Project Team

Federal Project Director

Assisted by:

Procurement, Financial Systems, Engineering, ES&H, Project Controls

Contractor Project Manager

Supported by:

Laboratory Staff, University Staff, Subcontractors

Planning & Monitoring Execution & Reporting

US DOE Line Management Hierarchy

Deputy Secretary of Energy

Under Secretary of Energy

Director Office of Science

Office of Science Associate Director

Office of Science Program Manager


Oversight

Advisory Groups

Office of Science & Technology Policy

Office of Science Advisory Committees

Facility User Collaborations

National Academy of Sciences

National Laboratory/Contractor

Congress (Various Committees)

Office of Management and Budget (OMB)

Government Accountability Office (GAO)

Inspector General (IG)

Office of Engineering and Construction Management (DOE-OECM)

SC Office of Project Assessment (SC 1.3)

Eval

uatio

n/A

dvic

e

Independent Oversight

Integrated Project Team


Assisted by:

Procurement, Financial Systems, Engineering, ES&H, Project Controls

Contractor Project Manager

Supported by:

Laboratory Staff, University Staff, Subcontractors

Planning & Monitoring Execution & Reporting

US DOE Line Management Hierarchy

Deputy Secretary of Energy

Under Secretary of Energy

Director Office of Science

Office of Science Associate Director

Office of Science Program Manager


Oversight

Advisory Groups

Office of Science & Technology Policy

Office of Science Advisory Committees

Facility User Collaborations

National Academy of Sciences

National Laboratory/Contractor

U.S. Department of Energy Headquarters

SecretaryDr. Samuel BodmanDeputy Secretary*

J. Clay Sell

Federal Energy

RegulatoryCommission

Under SecretaryFor Energy, Science and

EnvironmentDavid K. Garman

Under Secretary for Nuclear Security/Administrator for National

Nuclear Security AdministrationLinton F. Brooks


for Management andAdministration


for Infrastructure andEnvironment

EmergencyOperations

Deputy Administratorfor Naval Reactors

Deputy Administratorfor Defense Nuclear

Nonproliferation

Deputy Administratorfor Defense Programs

CivilianRadioactive Waste

Management

Nuclear Energy,Science

and Technology

Assistant Secretaryfor Energy Efficiency

and Renewable Energy

Science

Assistant Secretary for

Fossil Energy

Assistant Secretaryfor Environmental

Management

LegacyManagement

Electrical Transmission

and Distribution

Assistant Secretaryfor Environment,Safety and Health

Assistant Secretaryfor Congressional and

Intergovernmental Affairs

Assistant Secretaryfor Policy and

International Affairs


for Defense NuclearSecurity

Deputy Under Secretary

for Counter-terrorism

Power MarketingAdministrationCounterintelligence

Intelligence

Security and SafetyPerformance Assurance

InspectorGeneral

Chief InformationOfficer

PublicAffairs

Hearingsand Appeals

Departmental Rep.to the DNFSB

GeneralCounsel

Management, Budgetand Evaluation/CFO

Energy InformationAdministration

Economic Impactand Diversity

EnergyAssurance

Secretary of EnergyAdvisory Board

*The Deputy Secretary also serves as the Chief Operating Officer.

17 Mar 05

Project Line Management

Independent Project Oversight

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Cost is carefully managed at every project phase

Project Phase (Critical Decisions) from DOE O 413.3 Financial Management Activity

Approve Mission Need (CD-0) Ensure preliminary budgetary estimate ranges are reasonable

Approve Alternative Selection and Cost Range (CD-1)

Evaluate cost/benefit of alternatives Refine budget profile and cost estimates

Approve Performance Baseline (CD-2)

Evaluate adequacy of project contingency

Establish funding profile Establish performance measurement

baseline; begin earned value reporting

Approve Start of Construction (CD-3) Initiate major procurements Control changes affecting cost baseline Manage project contingency

Approve Start of Operations (CD-4) Assure funding profile supports project

end-game strategy Conduct financial closeout

*CD’s Approved by Acquisition Executives

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Office of Science Project Peer Reviews

Cited as best-practice by OSTP Peers are world-class scientists, engineers and managersExamines project cost, schedule, funding and management in detailEnsures project team is executing according to agreed upon plansInforms senior management on status and readiness to proceed to next phase

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Lessons Learned from Selected Office of Science Projects

Project Cost Location Spallation Neutron Source (SNS) $1.4B ORNL, Oak Ridge, TN

Advanced Photon Source (APS) $798.8M ANL, Chicago, IL Continuous Electron Beam Accelerator Facility (CEBAF) $513.1M TJNAF, Newport News, VA

Neutrinos at the Main Injector (NuMI) $167.8M Fermilab, Batavia, IL

Relativistic Heavy Ion Collider (RHIC) $616.5M BNL, Brookhaven, NY

U.S. Large Hadron Collider (U.S. LHC) $531M Fermilab, BNL, LBNL

B-Factory $177M SLAC, Menlo Park, CA Superconducting Super Collider (SSC) $11B? (project cancelled) Waxahachie, TX

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Spallation Neutron Source (SNS) – Successful Project

Purpose:To provide neutron beams with up to 10 times more intensity than any other source in the world (1.4 million watts of beam power on the target)

Total Project Cost:$1.4 billion

Start/End Dates:August 1996/June 2006 (forecast)

Operating Costs:~ $160 million per year

Features:• 80 acre site• 400 permanent staff• Initial suite of 24 instruments for material science investigations

Information: www.sns.gov

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SNS Lessons Learned

Strong, visible program advocacy and strongly supported mission needLab management team has a “project” mentalityProject execution is not rocket science, but requires attention and discipline Early planning for operations and commissioning/pre-operationsMulti-lab partnerships add another dimensionLong-range upgrade strategy established early between DOE and Lab

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Advanced Photon Source (APS) – Successful Project

Purpose:One of only three third-generation, hard x-ray synchrotron radiation light sources in the world to study the structure and properties of materials

Total Project Cost:$798.8 million

Start/End Dates:May 1988/August 1996

Features:• 1,104-meter (0.7 mi) circumference• 7 GeV• 450 permanent staff• 68 beamlines for experimental research

Information: www.aps.anl.gov

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APS Lessons Learned

Expert reviews built confidence in estimatesSafety program defined earlyEarly user input included in facility requirementsProject Team drove the project schedulesProactive cost savings program enhanced contingencyManagement control systems implemented early, and appropriately revised as project evolvedExpectations were defined and consistently communicated across the project team

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Continuous Electron Beam Accelerator Facility (CEBAF) Successful Project

Purpose:To understand how nuclear matter is formed from the more elementary particles (quarks). First superconducting electron accelerator built.

Total Project Cost:$513.1 million

Start/End Dates:February 1987/August 1994

Features:• 7/8 mile circular tunnel• 2,200 magnets in 58 varieties• 550 permanent staff

Information: www.jlab.org

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CEBAF Lessons Learned

Effective DOE-Contractor “Partnership”Strong Leadership and Senior ManagementCompetent and Experienced StaffIntegrated Planning – Project Management; Science; ES&H; and Business SystemsAdequate Checks and Balances – Independent ReviewsProactive Attention to Problem Identification, Tracking and Resolution

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Neutrinos at the Main Injector (NuMI) – Problems Encountered

Purpose:NuMI uses a particle accelerator at Fermilab, near Chicago, to produce an intense beam of neutrinos that travels 450 miles to the MINOS detector in Minnesota.

Total Project Cost:$167.8M

Start/End Dates:March 1997/February 2005

Features:• 6,000-ton steel detector located ½ mile underground in Soudaniron ore mine • NuMI tunnel at Fermilab is ¾ mile long and 300 ft deep at the near detector

Information: www.numi.fnal.gov

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NuMI Tunnel Issues

Demands of engineering and constructing underground beamlines underestimated Series of serious safety incidentsMatrix management poorly suited to supervision of NuMI project contractEscalating civil construction market in Chicago region

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NuMI Lessons Learned

Before starting the project, make sure a dedicated, competent, and proven management organization is in place Prior to baselining, allow for sufficient pre-planning and design to ensure that key technical issues and risks are well understoodPrior to starting construction, be aware of the message of the incoming bidsCorrect deficiencies as soon as they arise

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Relativistic Heavy Ion Collider (RHIC) – Successful Project

Purpose:To study the fundamental properties of matter from elementary atomic particles to the evolution of the universe

Total Project Cost:$600 million

Start/End Dates:July 1990/August 1999

Operating Costs:~ $130 million per year

Features:• Two crisscrossing rings in a tunnel 2.4 miles in circumference• 1,740 superconducting magnets• Four experiments: BRAHMS,

PHENIX, PHOBOS and STAR

Information: www.bnl.gov/rhic

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U.S. Large Hadron Collider Project (U.S. LHC) – Successful Project

Purpose:To collide two counter rotating proton beams, at a center-of-mass collision energy of 14 TeV. U.S. participates in construction of the accelerator and design, fabrication and operation of the CMS and ATLAS detectors.

Total Project Cost: (US share only)$531 million

Start/End Dates:December 1997/September 2008

Features:• 27 KM (16.8 mi) circumference tunnel• US ATLAS group consists of 31 Universities and 3 DOE Labs• US CMS group consists of 38 institutions

Information: http://www.ch.doe.gov/offices/FAO/projects/uslhc/index.html

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U.S. LHC Lessons Learned

Baseline projects with realistic cost estimates and schedulesImplement management systems early; revise as neededActively pursue strategies to avoid, transfer, control and mitigate riskGive decision-making authority to the project manager with an obligation to keep others informedMaking plans and actions transparent creates trust, confidence, and better qualityLogically subdivide large projects and align with competent managersUnderstand and honor roles of team members

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B Factory - Successful Project

Purpose:To create a facility for observing collisions of electrons and positrons with sufficient luminosity to measure the extent to which charge polarity conservation is violated in the decay of B-mesons.

Total Project Cost:$177 million

Start/End Dates:1993/1998

Features:• 3 KM (1.9 mi) linear accelerator• 2.2 KM (1.4 mi) circular storage ring• Project was replacement of an existing machine

Information: http://www.slac.stanford.edu/

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B Factory Lessons Learned

Use a central project management control systemDrive the scheduleUse a vertical not matrix project organizationUse phased commissioning; bring upstream systems online as early as possibleDon’t procrastinate on hard decisionsUse internal and external design reviews to assure qualityPay attention to team building

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Superconducting Super Collider (SSC) - Cancelled

Purpose:To create a particle accelerator with an energy of 20 TeVper beam as a means of capturing a Higgs boson from the planned collisions.

Total Project Cost:$10.45 Billion

The project was cancelled by Congress in 1993 after 14 miles of tunnel were dug and over 2 billion dollars spent.

Start/End Dates:September 1987/October 1993

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SSC Lessons Learned

Understanding of purpose and benefits not clearGrowing perception of poor management by DOE and SSCLIncreasing costs not understoodDiminishing likelihood for foreign participationRecruiting experienced scientists and engineers difficultUsers sensed very long time before research possible

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Summary of Lessons Learned

The project’s purpose and benefits must be clear.

Integrated Project Team and RelationshipsA dedicated, competent, and effective management organization, with adequate resources, must be in placeStrong Program support is criticalThe laboratory management team must have a project mentalityThere should be a strong DOE/Contractor “partnership”Roles of team members should be understood and honored

Early PlanningPre-planning and design is critical to ensure that key technical issues and risks are well understood prior to baseliningThe baseline should be well-defined with realistic cost estimates, schedules, and adequate contingencyManagement control systems should be implemented early and revised as the project evolvesPlanning for operations and commissioning/pre-operations should take place earlyA safety program should be defined earlyUser input should be included (early) in facility requirementsA long-range upgrade strategy should be established between DOE and the laboratory

Adequate Checks and BalancesExpectations should be defined and consistently communicated and managed across the project team; proactive attention should be given to problem identification, tracking, and resolutionStrong emphasis should be placed on meeting schedulesIndependent reviews should be conducted on a regular basis

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Early Planning Strongly Influences Project Outcomes

RAPIDLYDECREASINGINFLUENCE

MAJORINFLUENCE

LOWINFLUENCE

INFLUENCE

EXPENDITURES

LargeHighEXPENDITURES

INFLUENCE

Low SmallPERFORM

PRE-PROJECT PLANNING

EXECUTEPROJECT

OPERATEFACILITY

PERFORM BUSINESS PLANNING

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People Make Successful Projects

All participants and stakeholders must readily recognize the project’s scientific merit and/or needProject management (managers) must be highly crediblePositive relationships must exist among senior project managersGood personal relations are essential among customer/owner, contractor, vendorsThere must be a high quality, capable project staff

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Mega Project Management Studies

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Closing Thoughts

Scope definition is important; management is critical; funding is paramountToo often, optimistic rather than realistic view of events affecting projectsSlow to look outside the project for solutions (defensive routines)

Management, Management, Management!

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